FT.COM: … Under a new Franco-German plan that senior European officials said is likely to be included in a new Greek rescue, eurozone officials would create an escrow account to accept new bail-out funding instead of paying it all directly to Athens as in the past.
The new fund would then ensure bondholders are paid off, while additional cash to run the Greek government could still be withheld if Athens did not live up to tough new reform demands.
A senior French official said the plan, which has backing from the European Commission in Brussels as well as several other eurozone countries, was a way of “removing the Damocles sword of default” while keeping pressure on Athens to reform… (more)
